The new HARP 2.0 refi programs could take care of the high interst rates which is a real option for those not deeply underwater.

There also seems to be a high appetite for foreclosures in MM among professional flippers. Many of the distressed homes I see in MM are in lousy condition. A professional flipper can pick them up at trustees sale and turn the property around very quickly. There are lots of young professionals working in the area who would love to buy a turnkey newly remodelled home in that area at todays prices and interest rates.

I see more of the same as they gradually work their way through it all. Its worked so far and why would they change course?

FWIW I dont see any way they cant extend the mortgage debt forgiveness act. I could be wrong but it seems like we still have a few years of inventory to work through and those folks couldnt begin to pay the taxes that would be due.